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TTEC vs. PSTG: Which Stock Is the Better Value Option?

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Investors with an interest in Technology Services stocks have likely encountered both TTEC Holdings (TTEC - Free Report) and Everpure (PSTG - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

TTEC Holdings has a Zacks Rank of #1 (Strong Buy), while Everpure has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TTEC likely has seen a stronger improvement to its earnings outlook than PSTG has recently. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

TTEC currently has a forward P/E ratio of 1.92, while PSTG has a forward P/E of 26.16. We also note that TTEC has a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PSTG currently has a PEG ratio of 1.40.

Another notable valuation metric for TTEC is its P/B ratio of 0.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PSTG has a P/B of 13.75.

These metrics, and several others, help TTEC earn a Value grade of A, while PSTG has been given a Value grade of D.

TTEC has seen stronger estimate revision activity and sports more attractive valuation metrics than PSTG, so it seems like value investors will conclude that TTEC is the superior option right now.

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